EXPLORA TION

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					TEAL




                                          EXPLORATION




       TEAL Konkola North Shaft Complex
     TEAL
     Corporate Structure


                                                                                      65%




                    60%                       100%*                       100%                          70%                       92%                   100%
                                                              Kabwe West/South             Exploration                Otjikoto and                 Other
          Kalumines                 Konkola North               Lusaka North                                                                exploration projects
                                                                                          areas 2 and 4                   Otavi
              DRC                       Zambia                                                                                                Zambia/Namibia
                                                                 Lusaka West                  Zambia                    Namibia
                                                                   Zambia                                                                      /Mozambique




         Gécamines                                                                        Antofagasta                  EVI Mining
           40%                                                                               30%                           8%



     * ZCCM Investment Holdings plc has a 20% option on Konkola North, 5% of which is a “free carry”.




     Scorecard
     F2008 objectives                                     F2008 performance                                   F2009 Objectives
     ZAMBIA
     Continue the 18,000 metre exploration drilling Nearly 80% of the programme has been                      Complete this phase of the drilling programme
     programme at Konkola North’s Area ‘A’                completed with encouraging drill results            in order to assess the best way forward to
                                                          reported. The resource was independently            further verify and upgrade this large resource
                                                          verified as an inferred resource estimate           base.
                                                          amounting to 219Mt grading 2.64% copper
     Advance the feasibility study to assess the          Feasibility study is being revised to include the   To complete the feasibility study to an
     viability of mining the South and East Limb          upgraded resource base of 51Mt at 2.35%             acceptable level so that the TEAL Board can
     at Konkola North                                     copper, as well as updated capital and              make a go-ahead decision on this new copper
                                                          operating costs                                     mine
     DRC
     Continue the exploration drilling programme          Over 31,000 metres drilled and an initial           Complete the current exploration drill
     at the Lupoto Copper Project, which forms            resource reported (at a 0.5% copper cut-off):       programme and independently verify a final
     part of TEAL’s Kalumines licence area                  Indicated: 15.09 @ 2.32% copper; and              resource, which will be used in a feasibility
                                                            Inferred: 9.13 @ 2.09% copper                     study for a large new copper mining operation
     NAMIBIA
     Continue the exploration drill programme to          The indicated gold resource increased to            Exploration drilling, specifically targeting
     expand the resource base at the Otjikoto             1.05Moz of gold, grading 1.40g/t, with an           high-grade sections of the orebody, to be
     Gold Project                                         additional 877 000 ounces contained in the          continued to increase and upgrade the gold
                                                          inferred category at a grade of 1.41g/t             resource further




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                                                                                              Hannes Meyer
                                                                                          Acting CEO: TEAL




                                                                                                                    Copperbelt
           Kalumines                                             DEMOCRATIC                                         Antofagasta
            Copper-                                                REPUBLIC                                        Joint Venture
             Cobalt                                             OF THE CONGO
            Project                                                  (DRC)




                         Mwambashi                         ANGOLA
                          Copper                                                                                        Lusaka North
                          Project                                          ZAMBIA                                        Lusaka West
                                                                                                              UE
                                                                                                                        Kabwe Areas
                                                                                                          Q
                                                                                                        BI
                                                                                                     M
             Konkola                                                               ZIMBABWE        ZA
                                                                                                 O
              North                                                                            M
             Copper                                                     BOTSWANA
             Project                                       NAMIBIA


                                 Otjikoto
                                Gold Project
                                  & Otavi                                                                                    Mozambique
                                Exploration                       SOUTH AFRICA
                                                                                                                             Exploration
                                   Area




TEAL is a Toronto Stock Exchange and JSE listed mineral development        An independently verified, total inferred resource, for Area ‘A’ at
and exploration company with development projects and exploration          the Konkola North Copper Project in Zambia now amounts to
areas in the Democratic Republic of Congo (DRC), Zambia, Namibia,          219 500 million tonnes at 2.64% total copper. TEAL is further evaluating
and Mozambique. TEAL has targeted specific projects: the Konkola           these resources and seven boreholes of an 18,000 metre exploration
North Copper Project in Zambia; the Kasonta-Lupoto Mines s.p.r.l.          drilling program have been completed, selected results include:
(Kalumines) Lupoto Copper Project in the DRC, and the Otjikoto               9.74m at 3.87% copper
Gold Project in Namibia. The focus during the past year was on               9.75m at 5.62% copper
resource definition, feasibility study work and initial, limited mine        5.03m at 4.25% copper
production at the Lupoto Copper Project.                                     11.71m at 4.17% copper


During the financial year, TEAL acquired the 30% stake held by Korea       The Konkola North Copper Project feasibility study, based on an
Zinc Company Limited in certain exploration properties including the       operation to exploit the South and East Limbs, is being revised to include
Mwambashi Copper Project, resulting in the cancellation of the joint       the new resource base, which now totals 51 million tonnes
venture agreement.     Thereafter, in April 2008, a joint venture          at a grade of 2.35% copper. The updated feasibility study will
agreement was concluded with Antofagasta Minerals SA for an initial        also include a review of capital and operating costs. The finalisation
30% interest in two exploration licences (excluding the Mwambashi          of the amended feasibility study is expected by the end of the
Copper Project).                                                           2008 calendar year.


                                                                                                                                                        57
     TEAL

     TEAL has an existing mining licence over the Kalumines property                   Indicated Resources: 15.09 mt @ 2.32% TCu, 1.83% ASCu,
     in the DRC.     Initial mining at Kalumines’ Lupoto Copper Project                0.15% Co; and
     has produced (a) 46 404 tonnes of copper concentrates, the                        Inferred Resources: 9.13 mt @ 2.09% TCu, 1.73% ASCu.
     majority of which was sold to third parties; and (b) a stockpile
     of approximately 800 000 tonnes, at grades of between 4% and                   TEAL increased the Otjikoto Gold Project’s indicated gold resource
     6% copper.                                                                     from 460 000 ounces to 1.05 Moz of gold, equating to 23.3 Mt grading
                                                                                    1.40g/t, with an additional 877 000 ounces contained in the inferred
     In February 2008, TEAL received written notification from the                  category at a grade of 1.41g/t.
     Minister of Mines in the DRC informing TEAL of the outcome of
     the DRC’s Mining Contracts Review Commission with respect to                   ARM is encouraged by the continuing advancement in defining
     the Kalumines property. TEAL responded to the Government                       the resource bases that TEAL manages and explores. To this end
     in writing and TEAL has now received further correspondence                    ARM continued to support TEAL financially as further debt
     proposing a meeting to discuss amendments to the joint                         financing arranged after the year-end for TEAL amounting to
     venture agreement with Gécamines. This meeting is in the process               US$85 million, was supported by an increased matching ARM
     of being scheduled.                                                            guarantee. In August 2008, ARM issued a letter of financial support
                                                                                    in favour of TEAL for an amount of R385 million which will allow
     At the Lupoto Copper Project, the first phase resource estimation,             TEAL to fund continuing exploration in F2009.
     excluding the material mined at the phase 1 mining operation at a
     0.5% copper cut-off and to an average of 80 metres of vertical                 TEAL’s detailed results may be accessed and viewed at their website at
     depth, is as follows:                                                          www.tealmining.com.



                                                       Mineral resources summary as at 30 June 2008
     Mineral project                              TEAL’s            Mineral         Tonnes               Au       Contained            Total   Contained
                                                 Current         Resources              (m)          Grade             Gold         Copper        Copper
                                             Ownership            Category                             (g/t)          (Moz)             (%)         (MIb)
     Konkola North1                               100%            Measured             10.0                –               –           2.23           492
     South Limb2                                                  Indicated            2.22                –               –           2.13         1,042
                                                                    Inferred           16.2                –               –           2.22           793
     East Limb2                                   100%            Measured              7.1                –               –           2.34           366
                                                                  Indicated            11.7                –               –           2.87           740
                                                                    Inferred           10.7                –               –           2.83           663
     Area ‘A’                                     100%              Inferred         219.5                 –               –           2.64        12,775
     Lupoto Copper project3                         60%           Indicated            15.1                –               –           2.32           772
                                                                    Inferred            9.1                –               –           2.09           419
                                                             Measured and
     Mwambashi Copper        Project4             100%            Indicated            9.21                –               –           2.02           410
                                                                    Inferred           1.77                –               –           2.10            82
     Otjikoto Gold Project5                         92%           Indicated            23.3              1.4          1.048                –             –
                                                                    Inferred           19.4              1.4          0.877                –             –
     Notes:
     (1) ZCCM-IH has buy-in rights for up to 20% (including a 5% carried interest) of the Konkola North copper project.
     (2) The mineralized zones were modelled on a 1% total copper cut off.
     (3) Partial resources – some 1.350 meters of drilling still to be incorporated. This resource also excludes a surface stockpile containing approximately
         800.000 tones grading between 4% and 6% copper. The Lupoto Copper Project forms part of the Kasonta-Lupoto Mines s.p.r.I.(“Kalumines”)
         mining licence area in the DRC
     (4) The mineralized zones were modeled using a 0.5% total copper cut-off
     (5) The mineralized zones were modeled on a 0.4 grams/tonne gold cut-off



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